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FINANCIAL NEWS
Kuwait, Japan sign pact on double taxation
18 Feb 2007
(MENAFN) The Kuwaiti Finance Ministry announced the signing of the final five-year agreement for avoiding double taxation and preventing financial evasion with Japan, in relation to income taxes in the two countries, Kuna reported.
The ministry said in a statement that negotiations over the agreement began in 1993, and the first round involved a lot of meetings and talks.
The agreement aims to reduce tax burdens on Kuwaiti investors abroad, as well as on foreign investors in Kuwait, thereby encouraging the exchange of capital and investments.
As stipulated by this agreement, the investor will be subjected to single taxation on activities and profits, such as to avoid being taxed twice for share profit and interests.
This agreement will also serve to remove financial obstacles that may limit the movement of capital and commercial exchange between Kuwait and Japan. It is one of the most important agreements that Kuwait signs because of the tax exemptions and reductions on investments and commercial businesses in Kuwait and in Japan.
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